ActivumSG Sells Residential Portfolio in Berlin

Activum SG Capital Management Ltd., the German focused real estate fund manager, sells the residential portion of its Chausseehof asset – a 19,700 square meter office-hotel- residential complex in Berlin Mitte – just six months after the original purchase.

Located in an increasingly popular area in Berlin Mitte and close to the new site of the German Intelligence (“Bundesnachrichtendienst”) that is currently under construction, the 3,000 square meters of residential units are attached to the 16,700 square meters of hotel and office that make up part of the Chausseehofasset. Primary office tenants are Leibniz Gesellschaft and Vatenfall, while the 4-star business hotel is operated by Mercure, a mid-level Accor brand.

This residential sale follows on the back of the Activum´s purchase of two mid-scale residential redevelopment projects in Berlin.

Further to the sale of the residential, Activum SG has recently secured a loan on the office and hotel portion of the asset that it acquired in February 2012.

Activum founder Saul Goldstein stated “Together with our advisory team in Berlin, we continue to demonstrate our expedient approach to closing deals and extracting value from our assets to the benefit of our investors. Aside from a good entry price on this asset, stable cash flow from the hotel tenant, and advantageous financing from the bank, we see potential in redeveloping some of the underutilized space in the office building.”

The purchase of Chausseehofwas the second office investment made in Activum SG´s second real estate opportunity fund, which closed in late 2011 with €248.5 million raised.